By Jack Chavez, Staff Writer
The Deeley Insurance Group presented an overview of its coverage of the Ocean Pines Association during the May 25 board of directors meeting and broke down trends on premiums and policy costs.
Regardless of rising policy costs, premiums have nonetheless come down from the last year to what has been forecast now through 2023, largely because of progress with regard to worker’s compensation.
All policies, excluding worker’s compensation, totaled $383,630 in 2020-21 and are projected to cost $404,488 for 2022-23. But when adding in worker’s compensation, the difference of nearly $40,000 — $150,133 in 2021-22 and $110,156 in 2022-23 — wipes out that deficit and creates a savings of roughly $19,000.
The company specializes in coastal property, transportation, hospitality, contractors, human services and community associations and is a member of chambers of commerce in Berlin, Ocean Pines and Ocean City as well as the Ocean City Hotel-Motel-Restaurant Association.
“When we take over an association and every year, what we do is we audit the existing insurance policies against the governing documents of the association,” Deeley senior client advisor and liaison to Ocean Pines Megan Muller said. “We make sure nothing’s changed over the year.”
Over the past two years, Muller said, commercial property insurers have been hit hard because of natural disasters, supply chain issues, labor shortages and inflation — in other words, the same hang-ups that plague much of the global economy today.
Natural disasters, she said, are the primary cause of building and equipment losses, due in part to the surging prices from covid-related supply chain issues.
“Extreme weather events” rung up $100 billion in insured losses last year, Muller said. The issues causing the surges are still a problem today.
Even in a more favorable economic climate, insurance companies often stay away from coastal communities because of the great weather risks.
“The closer to water, high-wind areas or even proximity to neighbors can cause rates and pricing to escalate,” Muller said.
This story appears in the print version of Bayside Gazette on May 26, 2022.